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We read about these financial scams in the newspapers everyday, shake our heads in sympathy but tell ourselves we’re too smart to be conned. Don’t be so quick to dismiss these articles because in the world of financial scams, the average person is no match for the smooth-talking professionals that are out to take your money. Read below on how financial scams work.
How Financial Scams Work
The thought of making lots of money with minimal effort is always attractive and that is exactly how financial scams or skim cepat kaya work.
They often start by sending an sms or calling to inform that you are one of the “lucky” participants to a unique and lucrative business venture with a promise of a free holiday or shopping voucher without any obligations if you can spare some time to listen to their sales pitch. If you decide to go, you will find yourself in an office that is often in a shoplot and smartly dressed professional salesmen who will make you welcome and start on their presentation.
Financial Scams Often Conducted By Professionals
They often ask if you want ways to build your passive income, good retirement funds or high returns. Be careful for their questions are all cleverly designed to pique your interest and lead you on to finding out more.
These clever salesmen always start with a blank piece of paper, drawing various diagrams to show you how their business proposal can help you earn more with just a minimal capital from you. Everything they say will always be substantiated with official looking documents, newspaper articles and wonderful stories of their owner, board and management.
How much capital do you have to pay? It will not be revealed until they have confirmed that:
- You like the scheme
- You want more income
- You are interested in the proposal
- You will be willing to consider if the price is right
This is the cue for the manager to enter the discussion to give you today’s special price with a hefty discount from the “normal” price. It is only applicable if you sign up today by signing a contract and paying a deposit which can range from RM5,000 to even RM10,000. In some cases, they even offer to help you arrange financing to pay the balance!
Scams Don’t Have A Cooling Off Period For You To Get Your Deposit Back
You walk out with your head reeling from all the numbers and contract details and a little excited about getting some extra income on the side. Then you decide to log on and after reading various forums, find out its a scam! Unfortunately your contract is signed and if you had read and understood the fine print, there is no cooling off period for you to change your mind and get your deposit back.
These schemes are very common especially in KL where everyone wants to get rich quick in the tough city. Many operate under the disguise of multi level marketing and pyramid schemes which are actually illegal. So do beware of signing up for proposals you don’t feel comfortable with. It might be a scam!